What Is a Main Home? Main home is a term the Internal Revenue Service (IRS) uses to indicate the home a taxpayer has lived in most of the time during a given taxation year or the only home a taxpayer owns. The classification of a taxpayer’s main home is important when considering gains resulting from selling a
What Is Maintenance Margin? Maintenance margin is the minimum equity an investor must hold in the margin account after the purchase has been made; it is currently set at 25% of the total value of the securities in a margin account as per Financial Industry Regulatory Authority (FINRA) requirements. Key Takeaways Maintenance margin is the
What Is a Majority Shareholder? A majority shareholder is a person or entity that owns and controls more than 50% of a company’s outstanding shares. As a majority shareholder, a person or operating entity has a significant amount of influence over the company, especially if their shares are voting shares. Voting shares give a shareholder permission
What Is a Make-or-Buy Decision? A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier. Also referred to as an outsourcing decision, a make-or-buy decision compares the costs and benefits associated with producing a necessary good or service internally to the costs and benefits involved
What Is Make to Order (MTO)? Make to order (MTO), or made to order, is a business production strategy that typically allows consumers to purchase products that are customized to their specifications. It is a manufacturing process in which the production of an item begins only after a confirmed customer order is received. It is
What Is Make to Stock (MTS)? Make to stock (MTS) is a traditional production strategy that is used by businesses to match inventory with anticipated consumer demand. Instead of setting a production level and then attempting to sell goods, a company using MTS would estimate how many orders its products could generate, and then supply
What Is a Make-Whole Call? A make-whole call provision is a type of call provision on a bond allowing the issuer to pay off remaining debt early. The issuer typically has to make a lump-sum payment to the investor. The payment is derived from a formula based on the net present value (NPV) of previously
What Is Malfeasance? Malfeasance is an act of outright sabotage in which one party to a contract commits an act that causes intentional damage. A party that incurs damages by malfeasance is entitled to settlement through a civil lawsuit. Proving malfeasance in a court of law is often difficult, as the true definition is rarely
What Is Malpractice Insurance? Malpractice insurance is a type of professional liability insurance purchased by healthcare professionals. This insurance coverage protects healthcare providers against patients who file suits against them under the complaint that they were harmed by the professional’s negligence or intentionally harmful treatment decisions. Malpractice insurance also covers the death of a patient.
What Is a Managed Account? A managed account is an investment account that is owned by an investor but managed by somebody else. The account owner can either be an institutional investor or an individual retail investor. A professional money manager hired by the investor then oversees the account and the trading activity within it.
